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529/ESA balancing as kids get older...
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Topic: 529/ESA balancing as kids get older... (Read 763 times)
gettingtoyes
5 O'Clock Shadow
Posts: 53
529/ESA balancing as kids get older...
«
on:
January 25, 2023, 11:27:25 PM »
I contribute to a good amount to an ESA and 529 for my kids and I just put it all in VTSAX and SWTSX. One is 6 and the other is 2 so I've got a good time horizon for a bit- I do plan to start taking out around age 14 for a private high school (which is why I bother with the ESA since 529 can only give out $10k per year for secondary school).
I don't mind being 100% stocks for now but wonder at what point should I start changing some of it to more conservative investments? Bonds? Cash? I was thinking of looking at it 3-5 years out. Anyone gone through this with a long time horizon- how did you approach? With retirement you generally have a much bigger nest egg and ability to work more if needed but high school and college don't wait, heh (well...I suppose college could technically).
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EverythingisNew
Stubble
Posts: 123
Re: 529/ESA balancing as kids get older...
«
Reply #1 on:
January 31, 2023, 04:27:11 PM »
Currently have 529s in S&P 500 funds. I plan on switching to a target date fund 4 years out from college (when they enter high school). Knowing me I will probably delay this switch with a bit of market timing if it seems like an odd year, but the goal will be to switch 1st year of high school.
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MaybeBabyMustache
Walrus Stache
Posts: 5486
Re: 529/ESA balancing as kids get older...
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Reply #2 on:
January 31, 2023, 04:51:48 PM »
I have a 15 & 16 year old, and they are in targeted age fund, & still lost a lot over the past 12 years, so I'd say it's hard to tell. In previous years, it would have worked out great, but I wish I'd been more conservative.
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529/ESA balancing as kids get older...